[July 18, 2014] |
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Stock Market's Rise Lifts Retirement Balances to a New Record High
BOSTON --(Business Wire)--
At the end of the second quarter, Fidelity's analysis of its 401(k)
1 and IRA accounts revealed:
Infographic - Fidelity's analysis of 13 million 401(k) accounts: Q2 2014 (Graphic: Business Wire)
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For those employees who have been active in a workplace 401(k)
retirement plan for a full 10 years2, their average balance
rose 15.0% per year over the past decade to $246,200.
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The quarterly average 401(k) balance, which includes all employees at
various stages of their careers including just starting a job to
nearing retirement, rose 12.9% to $91,000, a record high, up from
$80,600 at the end of the second quarter 2013.
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The average balance in a Fidelity Individual Retirement Account (IRA)
at the end of the quarter was $92,6003, also a record high,
up 14.7% over the same period one year prior.
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Impact of the stock market remains significant with 77% of the
one-year 401(k) balance increase due to the equity markets and 23% due
to employee and employer contributions.
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Contributions by employees to 401(k)s continued to grow, averaging
$6,050 over the past year, with an average of $3,540 additional being
contributed by employers.
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"The recent record markets have resulted in increased retirement savings
for millions of Americans," said Jim MacDonald, president, Workplace
Investing, Fidelity Investments. "Now is a perfect time for people to
seek guidance to ensure their savings and investment strategies can
weather all market conditions. Fidelity's continued investment in
easy-to-use guidance, innovative digital platforms and savings tools are
helping drive improved retirement readiness."
To help all investors understand how much money they'll need to save for
retirement, Fidelity offers a Viewpoints
with an interactive modeling tool. In addition, for 401(k)
participants nearing retirement wanting to turn their savings into
income, the company offers a comprehensive online tool, Income
Simulator, as part of its NetBenefits® workplace guidance
offering.
For media-ready infographics that help visually tell the story of 401(k)
retirement saving in America, click here: 401(k)
savings by the numbers.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street,
Smithfield, RI 02917 Fidelity Investments Institutional
Services Company, Inc., 500 Salem St., Smithfield, RI 02917
Guidance provided by Fidelity is educational in nature, is not
individualized, and is not intended to serve as the primary or sole
basis for your investment or tax-planning decisions. Income
Simulator is an educational tool.
Past performance is no guarantee of future results.
693863.1.0 © 2014 FMR LLC. All rights reserved.
1 All 401(k) data as of June 30, 2014 unless otherwise
stated, and is based on our recordkept corporate defined contribution
plan base of 21,200 plans and 13 million participants (who are actively
employed employees and retired or terminated employees who still carry a
balance), excluding tax-exempt employees.
2 Employees with balance and actively employed by employer
continuously for past 10 years.
3 IRA data analysis from January 1, 2014 through June 30,
2014.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140718005377/en/
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